Yield on Treasury Bonds Falls by 39.5%
Yesterday the Central Bank of Kenya (CBK) offered 182 day Treasury Bills worth KES 2 billion and a two year Treasury bond worth KES 5 billion. For the bill, the CBK received bids worth KES 2.74 billion representing a subscription of 137% and accepted bids amounting to KES 2.73 billion.
Interbank Rate Keeps Rising
According to the Central Bank of Kenya, the interbank rate upon the close of business yesterday stood at 20.7011%. This is 1.2788% higher than the interbank rate on Tuesday. The rate has risen for two days in a row and it may follow this trend throughout the week. Last week…
Interbank Rate at its Highest in Two Weeks
The interbank rate, the cost at which commercial banks lend money to one another, rose to 19.4223% yesterday. This is the highest the rate has reached since April 5th when it was at 18.87%. Last week activity by the Central Bank of Kenya’s (CBK) mopped up excess liquidity in the…
What Capping of Interest Rates Could Have Done
The Finance Bill 2011/2012 was passed in parliament on Thursday after long debates and a troubled life on the shelves of the house. The bill was passed without the amendments proposed to it of having interest rates on loans capped and deposits interest made at a base rate…
Kenya Shilling Holds Steady, Expected to Weaken
According to Reuters, the Kenyan shilling has held steady against the dollar on Monday. The shilling may however weaken as the end of the month approaches as imports could put downward pressure on the shilling. The main imports expected are oil and oil products. What does this mean to…
Results of Wednesday’s T-Bill Auction
The Central Bank of Kenya yesterday auctioned 91 day and 182 day Treasury bills worth KES 7 billion. The 91 day T-bill received a subscription of 67% representing bids worth KES 2.7 billion while the 182 day T-bill received bids worth KES 5.3 billion representing a…
Treasury to Issue Two Year Bond
The Treasury has announced that it seeks Ksh 5 billion through a two year bond to be issued this month. The last two year bond issued was in November 2011 and the weighted average yield rose to 22.844% from 16.526% the previous month. The weighted average yield may rise even…
The Kshs. 50 Billion Syndicated Loan Explained
According to The Business Daily, Treasury has concluded negotiations for a $600 million dollar, Kshs. 50 billion loan from a group of international banks. The paper reported that Mr. Joseph Kinyua the Finance PS said that Citibank and Standard Bank are among the financiers. The funds will…
Kenyans Like Their Treasury Bills
The results of yesterday’s Central Bank of Kenya treasury bills’ auction are in and the verdict is clear. Kenyans love their treasury bills. Specifically the long term ones. The CBK received 157 bids for the 91-day treasury bills amounting to Kshs. 1.6 billion which represents about 39.99% subscription.
235% Oversubscription on 182-day T-bills
Last week, the Central Bank of Kenya offered 91-day and 182-day treasury bills for a total of Kshs. 7 billion. There were 157 bids for the 91-day bills amounting to Kshs. 1.6 billion and 156 bids for the 182-day bills amounting to Kshs. 7.05 billion. The CBK aimed at…
1
